On Thursday, European shares were sold off abruptly, thus giving a green light to a wide stock-market exodus, as market participants are still concerned with global economic growth as well as uncertainty with crude oil prices.
The Stoxx Europe 600 index dipped to 302.68 or 4%. It found itself on track for the lowest dip since October 2013. A 4% sag also stands for the worst trading day since the last year’s August, when the pan-European benchmark fell 5.3% on rumors over China.
Nervous investors are currently concerned with finding less risker assets, as great concerns regarding the strength of the global recover and ongoing weakness in oil prices, as the head of dealing of Stockbroker Interactive Investor, Andy McLevey states.
Crude oil prices sagged below $27, a 3.1% loss.
Andy added that he doesn’t see an immediate end in this situation, taking into account that today’s volatility is set to resume and this might provide an opportunity for investors. However, some market participants will most likely prefer just sitting on the sidelines until even a slightest calm is restored.
Meanwhile, banks headed the European sell-off. The Stoxx Europe 600 Banks Index lost 6%, thus contributing to its year-to-date loss of 28%.